ProMOS shares fall over 5 pct after equipment sale

TAIPEI, Jan 16 - Shares of ProMOS Technologies <5387.TWO> fell more than 5 percent on Friday after the struggling DRAM maker said it was raising T$580 million ($17.4 million) through the sale of chip-making equipment to TSMC <2330.TW>.

Around an hour into trade, ProMOS shares fell 5.85 percent, against the main TAIEX's <.TWII> 1 percent gain following the announcement of the sale late on Thursday. The company said it would incur a T$570 million loss on the sale.

Investors have been worried that the cash-strapped company needs to secure enough cash as $330 million worth of convertible bonds issued by the company will mature in mid-February.

Taiwan's economics ministry said on Thursday it had met with "relevant parties" to review the organisation of the island's DRAM industry, but that no concrete conclusions had yet been made.

Taiwan's government had asked ProMOS to resubmit a reorganisation plan jointly filed by the local DRAM maker and its bigger Japanese rival Elpida Memory <6665.T>, apparently seeking assurances of support for the domestic sector. (US$1=T$33.3)